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2004 SESSION

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Senate Committee on Finance

Chairman: John H. Chichester

Date of Meeting: January 27, 2004
Time and Place: 9:00 am, Senate Room B

S.B. 3 Special funds; abolishes those that are dormant and their associated programs.

Patron: Martin

Dormant special funds. Repeals certain dormant special funds, and the associated program, if no appropriation is made to the associated program by July 1, 2004. This bill repeals the Blue Ridge Economic Development Revolving Fund, the Alternative Water Supply Assistance Fund, the Workforce Development Training Fund, the Advantage Virginia Incentive Fund, Program, and Foundation, the Reading Incentive Grants Fund and Program, the Virginia Educational Excellence Incentive Reward Fund and Program, the Families in Education Incentive Grants Fund and Program, the Community-Based Intervention Program for Suspended and Expelled Students and its special fund, the Artists in the Classroom Grants Fund and Program, the Virginia Undergraduate Career and Technical Incentive Scholarship Fund and Program, the Higher Education Incentive Fund, the Information Technology Employment Performance Grant Fund and Program, and the Landfill Cleanup and Closure Fund. This bill is a recommendation of the Joint Subcommittee Studying the Operations, Practices, Duties, and Funding of the Commonwealth's Agencies, Boards, Commissions, Councils, and Other Governmental Entities pursuant to HJR 159 (2002).

S.B. 14 Utility tax; imposition on local consumers in town of Iron Gate for mobile phone usage.

Patron: Deeds

Local consumer utility tax. Allows the local governing body of the Town of Iron Gate to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after January 1, 2003, with an effective date on or after July 1, 2004. While such town ordinance remains in effect, Alleghany County shall not impose the tax within the limits of the Town.

S.B. 28 Line of Duty Act; definition of disabled employee.

Patron: Potts

Line of Duty Act; definition of disabled employee. Amends the definition of "disabled employee" under the Line of Duty Act to include any person who has become mentally or physically incapacitated on or after April 8, 1972, as a direct or proximate result of the performance of his duty. Any such employee mentally or physically incapacitated between April 8, 1972, and July 1, 2000, shall receive health insurance coverage payments, which shall be retroactive to July 1, 2000. Such health insurance coverage shall be the same plan of benefits that such incapacitated person was entitled to on the last day of his active duty.

Employees covered under the Line of Duty Act mentally or physically incapacitated prior to July 1, 2000, currently are not provided health insurance coverage by the Commonwealth. Health insurance coverage currently is only afforded to employees incapacitated on or after July 1, 2000.

S.B. 29 Budget Bill.

Patron: Chichester

Budget bill. Amends Appropriations Act of 2003, Chapter 1042.

S.B. 30 Budget Bill.

Patron: Chichester

Budget Bill. Makes appropriations for the 2004-06 biennium.

S.B. 31 Bond bill, Commonwealth of Virginia Higher Educational Institutions Bond Bill of 2004.

Patron: Chichester

Bond bill, Commonwealth of Virginia Higher Educational Institutions Bond Bill of 2004. Authorizes the issuance of 9(c) bonds in a principal amount not to exceed $255,316,600 for the financing of revenue-producing capital projects at institutions of higher education in the Commonwealth. Of the total amount of bonds authorized, $137,700,600 is allocated for previously authorized projects and $117,616,000 is allocated for new projects.

S.B. 32 Commonwealth of Virginia Parking Facilities Bond Bill of 2004.

Patron: Chichester

Commonwealth of Virginia Parking Facilities Bond Bill of 2004. Authorizes the issuance of 9 (c) bonds in a principal amount not to exceed $5,700,000 for acquisition of the Virginia Retirement System parking deck.

S.B. 36 Capitol Square Preservation Act of 2003; changes in provisions.

Patron: Trumbo

Capitol Square Preservation Act of 2003. Makes several changes to the Capitol Square Preservation Act of 2003 including (i) increasing the total principal amount of bonds that may be issued for the projects from $118,570,000 to $125,187,000 (and increasing the cost of specific projects by an equal amount); (ii) increasing the estimated cost of fixtures and furnishings for the Capitol Building from $5,972,000 to $13,825,000 (such amount is to be funded through private donations or other similar means of fundraising) and expanding the items to be funded thereby; (iii) authorizing the Governor to implement his plan to complete the renovations of the Old Finance Building and Washington Building projects; and (iv) requiring the Governor to prepare and present a plan to the Chairmen of the Senate Finance and Rules Committees and House Appropriations and Rules Committees on or before December 1, 2004, for the demolition of derelict buildings and development of office and parking facilities on state-owned property bounded by 8th, 9th, and Broad Streets in the City of Richmond.

S.B. 37 Virginia Public Building and Virginia College Building Authorities.

Patron: Chichester

Virginia Public Building Authority and Virginia College Building Authority. Authorizes the Virginia Public Building Authority and the Virginia College Building Authority to issue bonds in principal amounts not to exceed $56,457,000 and $216,865,538 to fund and construct specific capital projects throughout the Commonwealth.

S.B. 39 Statewide Agencies Radio System (STARS); financing through bonds.

Patron: Stolle

Bonds; Virginia Public Building Authority. Authorizes the Virginia Public Building Authority to issue bonds in the amount of $159,300,000 to finance the undertaking, development, acquisition and construction of the first phase of the State Agency Radio System (STARS).

S.B. 48 Firearms; criminal history records check required to obtain from firearms show vendor.

Patron: Marsh

Transfer of firearms; criminal records check. Adds a definition of "firearms show vendor" and requires that a criminal history record information check be performed on the prospective transferee before the vendor may transfer firearms at a gun show. Under current law, only licensed dealers must obtain such a check.

S.B. 60 Health insurance; credits for retired teachers.

Patron: Potts

Health insurance; credits for retired teachers. Increases the amount of monthly health insurance credit for retired teachers from $2.50 to $4 per year of service. The maximum monthly credit will not exceed $120.

S.B. 64 Enterprise zones; business and real property investment tax credit.

Patron: Martin

Enterprise zone tax credits. Makes several changes to the Enterprise Zone Act, including allowing tax credits for mixed-use real property, permitting an election by owners who rehabilitate or expand real property to treat a tenant of such property as having incurred the expenses of rehabilitation or expansion, and amending the definition of a permanent full-time position. In general, the changes are applicable for taxable income and expanded or rehabilitated property placed in service in taxable years beginning on or after January 1, 2003.

S.B. 65 Enterprise zones; real property investment tax credit.

Patron: Martin

Enterprise Zone Act. Increases the maximum real property investment tax credit from $125,000 per small qualified zone resident in any five-year period to $125,000 per zone resident per facility placed in service. The new maximum credit amount only applies to expanded, rehabilitated, or newly constructed real property that is placed in service in taxable years beginning on or after January 1, 2003.

S.B. 73 Churches; incorporation.

Patron: Howell

Churches; incorporation. Provides that churches may incorporate and hold legal title to real or personal property. In general, any legitimate business transaction or act of an incorporated church may be made without the appointment or use of trustees, to include the conveyance of any real or personal property owned by the incorporated church. A trustee of a church would be permitted to convey real or personal property to an incorporated church without the filing of an application or petition or other action in circuit court.

The bill would exempt from state and local recordation taxes deeds conveying real estate to an incorporated church, deeds of trust or mortgages given by an incorporated church, and deeds conveying real estate from an incorporated church.

The bill contains an emergency clause with an effective date of January 1, 2004.

EMERGENCY

S.B. 74 Tobacco prod.; tax increased, revenue deposited in Health Care Fund & Local Govt. School Const. Fund

Patron: Howell

State and local cigarette taxes. Increases the state cigarette tax from 2.5 cents per pack to 65 cents per pack (based on 20 cigarettes in a pack).

An amount equivalent to 40 cents per pack shall be deposited in a special fund titled "Local Government School Construction Fund." All such moneys deposited shall be distributed quarterly to counties and cities within 30 days after the end of each calendar quarter. Moneys in the Fund shall be distributed on a set per pupil amount, based on the latest actual adjusted average daily membership as determined by the Department of Education. All moneys distributed shall be used solely for public school construction, public school additions and renovations, including retrofitting and enlarging public school buildings; public school infrastructure, including technology infrastructure; site acquisition for public school buildings and public school facilities; or debt service payments on such projects completed subsequent to December 31, 1993.

An amount equivalent to 25 cents per pack shall be deposited in a special fund titled "Virginia Health Care Fund." All such moneys deposited shall be used solely for the provision of health care services.

The bill also authorizes all counties, cities, and towns to impose local cigarette taxes. The maximum local cigarette tax that may be imposed (i) between July 1, 2004, and July 1, 2005, is 20 cents per pack; (ii) between July 1, 2005, and July 1, 2006, is 35 cents per pack; and (iii) on or after July 1, 2006, is 50 cents per pack. Any county, city, or town imposing a local cigarette tax at a rate higher than these rates prior to December 1, 2003, may continue to impose the tax at such higher rate but no higher.

S.B. 84 Retail Sales and Use Tax; exemptions include Citizens United for Rehabilitation of Errants-VA, Inc.

Patron: Puller

Sales and use tax exemption; Citizens United for Rehabilitation of Errants-Virginia, Inc. Exempts from the retail sales and use tax beginning July 1, 2004, and ending July 1, 2008, tangible personal property purchased for use or consumption by a § 501 (c) (3) nonprofit corporation organized to improve the condition of prisoners and families affected by crime; reduce crime by promoting the creation and preservation of programs and policies directed at the rehabilitation of errants; and promote family and community ties during a person's incarceration.

S.B. 91 Retail Sales and Use Tax; exemptions for certain contractors.

Patron: Devolites

Sales and use tax; exemption for certain contractors. Exempts from paying the sales and use tax any person who contracts to perform services for and provides tangible personal property for consumption or use by the Commonwealth, any political subdivision of the Commonwealth, or the United States, if the Commonwealth, political subdivision, or the United States certifies that title to such tangible personal property will pass to such governmental entity.

S.B. 111 Recordation tax; leases on oil, gas and mineral rights and communications towers.

Patron: Williams

Recordation tax; leases. Provides that the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs owned by a person in the business of outdoor advertising shall equal $25. The bill sets a tax of $50 on the recordation of leases of coal and other mineral rights. Under current law, the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs may not exceed $25, and the tax on the recordation of leases of coal and other mineral rights may not exceed $50.

The bill also provides that the tax on the recordation of a lease of a communications tower or a communications tower site shall be $75. The tax on the recordation of each lease to affix communications equipment or antenna to any such tower or other structure shall be at a rate of $15 for each tower or structure to which equipment or antenna is to be affixed.

S.B. 120 Public service corporations; filing of annual report.

Patron: Watkins

Annual report filing by utilities. Provides that the real and tangible personal property in the Commonwealth leased and operated by each electric supplier and corporation in the business of furnishing heat, light and power by means of electricity includes only those assets directly associated with production facilities and shall not mean real estate or vehicles. The provisions apply for tax years beginning on or after January 1, 2004, and there is an emergency clause.

EMERGENCY

S.B. 121 Public service corporations; locality to determine taxation of real and tangible personal property.

Patron: Watkins

Taxation of public service corporations real and personal property. Limits the rate imposed by localities on generating equipment reported to the State Corporation Commission by electric suppliers to the local real estate tax rate.

S.B. 122 Real estate tax; allows Goochland County to increase amount of income for elderly or disabled.

Patron: Watkins

Real property tax; exemptions for elderly and handicapped. Permits Goochland County to increase the income and financial worth limitations used to determine whether certain elderly or handicapped persons are eligible for exemption from or deferral of real property tax.

S.B. 140 Real estate tax; limitation on tax rate.

Patron: Cuccinelli

Real estate tax; limitation on tax rate. Provides that an annual assessment, biennial assessment or general reassessment of real property may not result in more than a five percent increase in the total real estate tax levies for a county, city or town, with one exception. The bill also provides that a county, city or town may not set its real property tax for any tax year at a rate that would produce more than 105 percent of the previous year's total real property tax levies for such county, city or town, with one exception. The exception would allow a locality to multiply its current rate by the sum of (i) the rate of the population growth, plus (ii) the rate of inflation in the locality for the immediately preceding year. The average tax increase on individuals would not exceed five percent. However, some taxpayers could be above the average while others could fall below the average. Under current law, (a) the annual growth rate in a locality's total real estate taxes from an annual assessment, biennial assessment or general reassessment is not capped, provided the locality holds a public hearing in regard to its real property tax rate; and (b) there is no cap on real property tax rates.

S.B. 147 Taxes, local; authority concerning increase in excise tax on cigs, adms, transient occupancy, etc.

Patron: Cuccinelli

Local taxes. Authorizes all counties to impose excise taxes on cigarettes, admissions, transient room rentals, meals, and travel campgrounds beginning January 1, 2005, with no cap on the rate of tax, provided that any county increasing or first imposing any of these taxes on or after January 1, 2004, shall be subject to limits on the amount of annual revenue that may be generated from the county's real estate tax. For each of the first three tax years of such increase or initial imposition of such tax, the county shall set its rate of tax on real estate so as to produce total real estate tax revenues not to exceed the prior year's total real estate tax revenues adjusted for inflation and population minus the additional revenue estimated to be generated from any increase in county tax or new county tax that is to become effective in the tax year.

In no event however, for any of the three years, may the county's total real estate tax revenues increase by more than five percent when compared to the previous year.

For every tax year following the initial three-year period, the county's revenues from real estate tax may not increase by more than five percent each year.

S.B. 157 Retirement System; purchase of prior service credit by certain local govt. chief executive officers.

Patron: Potts

Virginia Retirement System; purchase of prior service credit. Provides that certain local government chief executive officers may purchase an additional 10 years of retirement service credit for prior service for the Commonwealth or another state (this is in addition to the four years under law that may already be purchased). The cost for each additional year of service shall equal 10 percent of the local government chief executive officer's compensation at the time of purchase, provided that the additional retirement service is purchased within one year of the local government chief executive officer's eligibility and is paid for in one lump-sum payment to the Virginia Retirement System. For each year of service purchased under the bill, the local government chief executive officer is required to serve the same number of years as a local government chief executive officer subsequent to the date of purchase. Any local government chief executive officer who fails to serve the required number of years shall forfeit any credited service for the number of years not served and shall be liable to his governing body for any amount paid by it for purchasing the forfeited prior service credit.

S.B. 164 Law Officers' Retirement System; includes juvenile probation and parole officers.

Patron: Colgan

Virginia Law Officers' Retirement System. Adds juvenile probation and parole officers as members of VALORS.

S.B. 168 Judges; increases number in 1st, 14th, 15th, 22nd and 29th circuit court.

Patron: Stolle

Number of circuit court judges. Adds one circuit court judge to each of the following circuits: First (Chesapeake); Fourteenth (Henrico); Fifteenth (Fredericksburg, Caroline, Essex, Hanover, King George, Lancaster, Northumberland, Richmond, Spotsylvania, Stafford, Westmoreland); Twenty-second (Danville, Franklin, Pittsylvania); and Twenty-ninth (Buchanan, Dickenson, Russell, Tazewell). This is a recommendation of Judicial Council.

S.B. 169 Judges; increases number in 15th and 27th juvenile and domestic relations district court.

Patron: Stolle

Number of juvenile and domestic relations district court judges. Increases the number of juvenile and domestic relations district court judges by one each in the 15th (Fredericksburg, King George, Stafford, Spotsylvania, Caroline, Hanover, Lancaster, Northumberland, Westmoreland, Richmond and Essex) and 27th (Galax, Radford, Pulaski, Wythe, Carroll, Montgomery, Floyd, Giles, Bland and Grayson) Districts.

S.B. 191 Claims; Larry and Virginia Mitchell.

Patron: Reynolds

Claims; Larry and Virginia Mitchell. Provides $5,000 in relief to Larry and Virginia Mitchell. The Mitchells suffered $5,000 in losses from damage to their corn crop caused by a bear(s). The Mitchells assert that the bear(s) that destroyed part of their corn crop was released by the Department of Game and Inland Fisheries.

S.B. 192 Embezzlement by public official of public funds; penalty.

Patron: Reynolds

Embezzlement by public official; penalty. Provides that it is a Class 4 felony for a public official or employee to knowingly misuse, misappropriate or unlawfully dispose of any public funds, and provides one year of incarceration in a state correctional facility with no suspension of sentence for each $50,000 misused, misappropriated or disposed of unlawfully.

S.B. 195 Medical assistance services; eligibility for aged and disabled individuals.

Patron: Reynolds

Income eligibility for medical assistance services of aged and disabled individuals. Requires the Virginia Medicaid program to increase the income eligibility of aged and disabled individuals to 100 percent of the federal poverty lines as allowed by federal law.

S.B. 196 Health Access Plan; created.

Patron: Reynolds

Virginia Health Access Plan. Establishes the Virginia Health Access Plan (Plan) to be administered by the Department of Medical Assistance Services (DMAS), modeled on Vermont's Health Access Plan, to provide uninsured and underinsured adults in the Commonwealth with health benefits coverage. Uninsured or underinsured adults (i) with children with income at or below 185 percent of the federal poverty level or (ii) without children with income up to 150 percent of the federal poverty level are eligible under the plan. DMAS may contract with third-party administrators to provide administrative services that include enrollment, outreach, eligibility determination, data collection, financial oversight, and reporting. The Board of Medical Assistance Services shall implement emergency regulations to implement the Plan. No entitlement to health benefits coverage on the part of any eligible person or any right or entitlement to participation is created and such coverage shall only be available to the extent that funds are appropriated therefor. Enactment clauses require DMAS to seek a waiver for the Plan from the Centers for Medicare and Medicaid Services and set the effective date of the act as July 1, 2005, with implementation to occur on the earlier of 90 days following the adoption of emergency regulations or July 1, 2006.

S.B. 213 Food and beverage tax; imposition in Giles County.

Patron: Edwards

Food and beverage tax imposed without referendum; Giles County. Permits Giles County to impose a food and beverage tax by adoption of local ordinance, not by referendum.

S.B. 230 Brown v. Board of Education Scholarship Program and Fund; created.

Patron: Lambert

Brown v. Board of Education Scholarship Program and Fund. Creates the Brown v. Board of Education Scholarship Program for the purpose of assisting students who were enrolled in the public schools of Virginia between 1954 and 1964, in jurisdictions in which such public schools were closed to avoid desegregation, in obtaining a high school diploma, the General Education Development certificate, career or technical education or training, or an undergraduate degree from a public institution of higher education in Virginia. The State Council of Higher Education shall administer the Program. The Brown v. Board of Education Scholarship Awards Committee, established in the legislative branch of state government, is composed of legislators and nonlegislative citizen members appointed by the Joint Rules Committee and the Governor and is authorized to award the scholarships and govern the Program. The Brown v. Board of Education Scholarship Program Fund, a special nonreverting fund, is established on the books of the Comptroller to receive appropriations, gifts, grants, donations, and bequests for the Program. The bill also establishes student eligibility for such scholarships and stipulates that scholarships may be used only for payment of tuition charges. In addition, the bill provides that (i) the Program does not establish any legally enforceable right or entitlement on the part of any person or any right or entitlement to participation in the program; and (ii) scholarships must be awarded to the extent funds are made available or as directed by the appropriation act.

This bill also allows individuals entitled to an income tax refund to contribute a portion, at least $1, or all of the refund to the Brown v. Board of Education Scholarship Fund for taxable years beginning on and after January 1, 2004. The Fund provides support by means of grants to persons who were enrolled in the public schools of Virginia between 1954 and 1964, in jurisdictions in which such public schools were closed to avoid desegregation, in obtaining a high school diploma, the General Education Development certificate, career or technical education or training, or an undergraduate degree from a public institution of higher education in Virginia. The State Council of Higher Education shall administer the Program.

The second enactment clause provides that educational terms used in the act shall be construed as defined in Titles 22.1, 23, and 40.1. The third enactment clause requires the Tax Commissioner to include a description of the Brown v. Board of Education Scholarship Program in the instructions for the annual Virginia income tax return package. The fourth enactment clause expresses the General Assembly's acknowledgement of the irreparable harm suffered by African-American and Caucasian students due to the school closings.

This bill is supported by the Dr. Martin Luther King, Jr. Memorial Commission.

S.B. 231 Income tax, corporate; reduces new emp. threshold to rec. major business facility job tax credit.

Patron: Lambert

Taxation; major business facility job tax credit. Extends the sunset date for the major business facility job tax credit from January 1, 2005, to January 1, 2015.

S.B. 232 Economic Development Incentive Act; created.

Patron: Lambert

Virginia Economic Development Incentive Act. Establishes the Virginia Economic Development Incentive Fund (Fund) to be administered by the Virginia Economic Development Partnership. The Fund will be used to provide grants for projects creating at least 400 jobs with average salaries at least 50 percent greater than the prevailing average wage for the area and investing a minimum of $6,500 per job or $5 million in capital, whichever is greater. Any project that is qualified to seek a Virginia Investment Partnership grant would be ineligible for a grant under the Act.

S.B. 234 Claims; Julius Earl Ruffin.

Patron: Lambert

Claims; Julius Earl Ruffin. Provides relief for Julius Earl Ruffin who was incarcerated between 1982 and 2003 for a crime that scientific evidence later revealed he did not commit. Governor Warner granted him an absolute pardon on March 19, 2003. Under the bill, the Commonwealth will provide a lump-sum payment to Mr. Ruffin of $1 million to be paid by August 1, 2004, and $2 million through an annuity to be in equal monthly payments for 30 years commencing on or before September 1, 2004.

S.B. 247 Real estate tax; credit for permanent easements.

Patron: Deeds

Real estate tax; credit for permanent easements. Allows localities to provide by ordinance for a credit against the real estate tax for permanent easements granted by taxpayers on property used for public purposes within the locality.

S.B. 248 Real estate tax; deferral for certain disabled military veterans.

Patron: Deeds

Real estate tax; deferral of taxes for certain disabled individuals. Provides that disability benefits received by wounded and disabled military veterans shall not be included in income when determining eligibility for localities' tax deferral programs.

S.B. 253 Retail Sales and Use Tax; exemptions include Clinch Independent Living Services Inc.

Patron: Puckett

Sales and use tax exemption; Clinch Independent Living Services Inc. Exempts from the retail sales and use tax beginning July 1, 2004, and ending July 1, 2008, tangible personal property purchased for use or consumption by a § 501 (c) (3) nonprofit corporation operated by and for people with disabilities and that provides information and referral, peer counseling, independent living skills, and advocacy services to and on behalf of people with disabilities.

S.B. 254 Retirement System membership; includes Breaks Interstate Park Commission.

Patron: Puckett

Virginia Retirement System membership; Breaks Interstate Park. Permits members of the Breaks Interstate Park Commission's retirement system to transfer to the Virginia Retirement System. A majority of the members of the Breaks Interstate Park Commission's retirement system must petition for such transfer prior to September 1, 2004.

S.B. 256 Claims; Marshall and Allison Lineberry.

Patron: Puckett

Claims; Marshall and Allison Lineberry. Provides relief for Marshall and Allison Lineberry, consisting of a lump-sum payment of $200,000 to be paid by August 1, 2004. Mr. and Mrs. Lineberry purchased a house without a certificate of occupancy and now are unable to sell the house without such a certificate. A permanent certificate of occupancy was never issued for the house due to serious structural defects. In order to receive a certificate of occupancy, the house must be demolished and rebuilt.

S.B. 263 Income tax, state; credit for purchase of long-term care insurance.

Patron: Lambert

Individual income taxes; credit for purchase of long-term care insurance. Provides a credit against individual income taxes for certain long-term care insurance premiums paid by the individual during the taxable year. The amount of the credit for each taxable year shall equal 10 percent of the amount paid during the taxable year by the individual in long-term care insurance premiums for long-term care insurance coverage for himself. The credit would be available beginning with the 2004 taxable year. Any unused credit may be carried over in the next five taxable years.

To claim the credit, the individual shall attach to his individual income tax return proof of payment for such premiums, as determined by guidelines established by the Tax Commissioner.

The credit would replace the current deduction for long-term care insurance.

S.B. 269 Cigarettes; tax increased, use for funding police and teacher salaries and Medicaid.

Patron: Potts

State and local cigarette taxes. Increases the state cigarette tax from 2.5 cents per pack to $1 per pack and appropriates the revenues collected from such increase for state police officers' salaries, deputy sheriffs' salaries, K through 12 teachers' salaries, and Medicaid funding. The bill also caps local cigarette taxes at the rates in effect on January 1, 2004.

S.B. 279 Law Officers' Retirement System, includes managers of political subdivisions.

Patron: Wampler

Virginia Law Officers' Retirement System. Provides that managers of political subdivisions that participate in the retirement system shall receive benefits equivalent to those of state police officers, except for the benefits provided under § 51.1-209, regardless of whether the employer has elected to provide equivalent benefits.

S.B. 281 Income tax, state; increases personal exemption.

Patron: Wampler

Taxation; personal exemption. Increases the individual income tax personal exemption amount from $800 to $1,200 beginning with the 2004 taxable year.

S.B. 284 Line of Duty Act; funding of continued health insurance and death payment benefits thereunder.

Patron: Wampler

Relating to the Line of Duty Act.

S.B. 295 Government Fee Disclosure Act; created.

Patron: O'Brien

S.B. 305 Tax information; does not prohibit release of information to persons who are subject thereof.

Patron: O'Brien

Taxation; secrecy of information; right of subject of tax records. Clarifies that the prohibition against the release of any information acquired by any state or local tax or revenue officer or employee with respect to the transactions, property, including personal property, income or business of any person, firm or corporation shall not be construed to prohibit the disclosure of such information to any person who is the subject thereof.

S.B. 311 Law Officers' Retirement System; retirement benefits of persons in a hazardous position.

Patron: Hawkins

Virginia Law Officers' Retirement System. Classifies service rendered as an employee under the Virginia Law Officers' Retirement System as service rendered in a hazardous position for purposes of retirement benefits under or pursuant to the State Police Officers' Retirement System. The bill applies to persons retiring on or after October 1, 1999.

S.B. 316 Utility tax; imposition on local consumers in Towns of Herndon and Vienna for mobile phone usage.

Patron: Howell

Local consumer utility tax. Allows the local governing bodies of the Towns of Herndon and Vienna to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after July 1, 2004. Each town may adopt such ordinance. While the town ordinance remains in effect, Fairfax County shall not impose the tax within the limits of the respective town that has adopted the ordinance.

S.B. 332 Police Officers' Retirement System, State; increases retire. allow. for serv. rendered in haz. pos.

Patron: Stolle

State Police Officers' Retirement System. Increases the multiplier for average final compensation from 1.70 to 2.50 and eliminates the additional annual allowance for service rendered in a hazardous position. The bill affects the retirement allowances of state police officers retiring on or after July 1, 2004.

S.B. 346 Budget Reform Act of 2004; provisions.

Patron: Cuccinelli

Budget Reform Act of 2004. Provides for the Budget Bill to set forth each agency's mission, goals and objectives, objective performance measures and descriptions of (i) how the goals and objectives are directly related to furthering the agency's mission, and (ii) how the agency is operating to achieve its mission, goals and objectives. The bill also requires the Budget Bill to include certain information regarding the budget requests of state agencies and nonstate entities.

S.B. 347 Retail Sales and Use Tax; extends sunset provi. for textbooks for free distrib. to professors.

Patron: Houck

Sales tax; exemption for textbooks and other educational materials for free distribution. Extends the sunset date from July 1, 2004, to July 1, 2008, for textbooks and other educational materials withdrawn from inventory at book-publishing distribution facilities for free distribution to professors.

S.B. 349 Personal property tax; exemption for vehicles owned by volunteer rescue and fire organizations.

Patron: Houck

Taxation; special classification of certain motor vehicles for local taxation. Increases from one to two the number of specially classified motor vehicles in households containing both a member and an auxiliary member of a volunteer rescue squad or a volunteer fire department. Such special classifications are used for local taxation of certain personal property.

S.B. 356 Motor Vehicle Sales Tax; increased, revenue deposited in Transportation Authorities of Commonwealth.

Patron: Colgan

Transportation authorities of the Commonwealth. Creates a transportation authority for each of the nine current construction districts. The transportation authorities are to be funded from increases in the motor vehicle sales and use tax. The tax is increased from three to five percent for sales of motor vehicles and from four to six percent for the rental of motor vehicles. The transportation authorities are given the responsibility for planning and providing for the transportation needs of the counties and cities embraced by the authority. The transportation authorities may use their share of motor vehicle sales and use tax revenues to acquire or construct transportation facilities, and may issue bonds for such purposes and provide security for bonds with their allocable share of motor vehicle sales and use tax revenues.

The provisions of the bill are effective January 1, 2005.

S.B. 357 Motor fuels tax; increased, revenue deposited in Transportation Authorities of Commonwealth.

Patron: Colgan

Transportation authorities of the Commonwealth. Creates a transportation authority for each of the nine current construction districts. The transportation authorities shall be funded from a seven-cent increase in the fuels tax on gasoline, diesel fuel, and alternative fuels. Under the bill the tax on gasoline would increase from 17.5 cents per gallon to 24.5 cents per gallon, and the tax on diesel fuel and alternative fuels would increase from 16 cents per gallon to 23 cents per gallon. Each Transportation Authority's share of such revenues shall be determined on a pro rata basis according to the population of the counties and cities embraced by each Authority as compared to the total population of the Commonwealth. The transportation authorities are given the responsibility for planning and providing for the transportation needs of the counties and cities embraced by the authority. The transportation authorities may use their share of fuels tax revenues to acquire or construct transportation facilities, and may issue bonds for such purposes and provide security for bonds with their allocable share of fuels tax revenues.

The provisions of the bill are effective January 1, 2005.

S.B. 358 Claims; Henry Ridge.

Patron: Colgan

Claims; Henry Ridge. Provides an amount to be determined by the Commonwealth Transportation Commissioner in relief for Henry Ridge. Mr. Ridge received additional payment for the Stafford County property upon which the Commonwealth Transportation Commissioner exercised eminent domain. However, he received no interest award on the additional payment due to the interest rate applied by § 33.1-128 being negative. § 33.1-128 was amended during the 2003 Session and made retroactive, but Mr. Ridge's situation still does not qualify for retroactive application of the amended section. Mr. Ridge is seeking the amount he would receive if he qualified for retroactive application of the amended section.

S.B. 361 Real estate tax; allows No. Va. increase amount of income for elderly or disabled prior reduced imp.

Patron: Colgan

Real property tax; exemptions for elderly and handicapped. Permits northern Virginia localities to increase the income and financial worth limitations used to determine whether certain elderly or handicapped persons are eligible for exemption from or deferral of real property tax.

S.B. 366 Public service corporations; locality to determine taxation of real and tangible personal property.

Patron: Watkins

Taxation of certain electric suppliers' real and personal property. Clarifies that localities may tax certain electric suppliers' generating equipment at a rate less than the local real estate tax rate.

S.B. 367 Transient occupancy tax; additional imposition in certain counties or cities.

Patron: Watkins

Transient occupancy tax; certain regions. Provides for an additional one percent transient occupancy tax for any two or more contiguous counties or cities if the revenues are used for debt service for a performing arts center and to advertise, promote or provide incentives to attract convention business to the region.

S.B. 370 Inspector General, Office of State; created.

Patron: Cuccinelli

State Inspector General Act of 2004.

S.B. 374 Admissions tax; imposition in Nelson County.

Patron: Deeds

Admissions tax; Nelson County. Authorizes Nelson County to levy admissions tax on all classes of events, thereby removing existing limitations. Removes reference to Nelson County by population bracket and identifies the county by name.

S.B. 375 Transient occupancy tax; imposition in Nelson County.

Patron: Deeds

Transient occupancy tax; Nelson County. Authorizes Nelson County to impose a transient occupancy tax not to exceed five percent.

S.B. 377 Prescription Drug Payment Assistance Program; created, annual report on effectiveness.

Patron: Deeds

Health; Virginia Prescription Drug Payment Assistance Plan. Establishes a program to be administered by the Department of Medical Assistance Services (DMAS), modeled on Delaware's Prescription Drug Payment Assistance Program, to assist eligible elderly and disabled Virginians in paying for prescription drugs. DMAS may contract with third-party administrators to provide administrative services that include enrollment, outreach, eligibility determination, data collection, financial oversight, and reporting. The benefit is limited to prescription drugs manufactured by pharmaceutical companies that agree to provide manufacturer rebates. Eligible persons must have incomes at or below 150 percent of the federal poverty level or have prescription drug expenses that exceed 40 percent of their annual income, as set forth in the appropriation act. They must also be age 65 or older or eligible for federal Old-Age, Survivors and Disability Insurance Benefits, not be receiving a prescription drug benefit through a Medicare supplemental policy or other third-party payor prescription benefit as of July 1, 2004, and be ineligible for Medicaid prescription benefits. However, nothing shall prohibit the enrollment of a person in the program during the period in which his Medicaid eligibility is determined. Eligible enrollees will receive an identification card to be presented to pharmacists and will start receiving the benefit the month after their eligibility is determined. Benefits will be paid to pharmacies under a point-of-service claims procedure to be established by DMAS. Participants are required to make a co-payment for each prescription, which in general will not exceed 25 percent of the cost, but not less than $5. Money to pay the claims will come from the newly established Prescription Assistance Fund, which is to be financed by 10 percent of the proceeds received by the Commonwealth under the Master Tobacco Settlement Agreement and any federal funds available for this purpose. Administrative costs are to be paid from the pharmaceutical manufacturer rebates to the extent available and the $20 annual enrollment fees. The Board shall develop a comprehensive statewide community-based outreach plan to enroll eligible persons and DMAS shall report annually on the program's implementation. No entitlement to prescription drug coverage on the part of any eligible person or any right or entitlement to participation is created and such coverage shall only be available to the extent that funds are appropriated therefor.

S.B. 378 Estate tax; exemptions for closely held businesses or property used for agricultural purposes.

Patron: Deeds

Virginia estate tax. Exempts estates from the Virginia estate tax if the majority of the total estate is comprised of agricultural property, a closely held business or a noncorporate business.

S.B. 392 Estate tax; conformity of state and federal statutes.

Patron: Norment

Estate tax. Conforms the amount of Virginia estate tax due from an estate to the maximum amount of the federal estate tax credit for state estate taxes, as permitted under federal estate tax law, as such law shall be amended from time to time. Under current law the amount of Virginia estate tax cannot be less than the federal credit under federal law as such law existed on January 1, 1978.

S.B. 398 RS&UT; entitles Newport News to revenues gen. by trans. in pub. fac. to pay for bonds.

Patron: Norment

Sales tax; revenues generated from transactions in certain public facilities in Newport News. Entitles the City of Newport News to sales tax revenues generated from public facilities constructed or substantially renovated from the proceeds of bonds issued by the City between July 1, 2004, and July 1, 2007.

S.B. 399 Recordation tax; leases on oil, gas and mineral rights and communications towers.

Patron: Norment

Recordation tax; leases. Provides that the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs owned by a person in the business of outdoor advertising shall equal $25. The bill sets a tax of $50 on the recordation of leases of coal and other mineral rights. Under current law, the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs may not exceed $25, and the tax on the recordation of leases of coal and other mineral rights may not exceed $50.

The bill also provides that the tax on the recordation of a lease of a communications tower or a communications tower site shall be $75. The tax on the recordation of each lease to affix communications equipment or antenna to any such tower or other structure shall be at a rate of $15 for each tower or structure to which equipment or antenna is to be affixed.

S.B. 410 Claims; Sharon Dalton.

Patron: Ruff

Claims; Sharon Dalton. Provides $69,820 in relief for Sharon Dalton. Mrs. Dalton was injured in December 1996 while performing her work duties for the Department of Alcohol Beverage Control when a stack of liquor cases fell on her head and neck, injuring her neck. This relief is for lost wages from February 2000. The Workers' Compensation Commission denied Mrs. Dalton's claim for part of the period in question; however, Mrs. Dalton questions the sufficiency of the evidence relied upon by the Commission in deciding to deny her claim.

S.B. 411 Income tax, corporate; Tiered Incentive Program created to provide tax cred. in dis. local., report.

Patron: Ruff

Virginia Tiered Incentive Program. Establishes a program for providing corporate income tax credits for creation of jobs in economically distressed localities. The amount of the credit will be based on factors such as median household income and rates of unemployment. The Tax Commissioner shall promulgate regulations that are necessary or desirable to carry out the provisions of the act. This bill is a recommendation of the Rural Virginia Prosperity Commission.

S.B. 422 Retirement System; creditable compensation of certain law-enforcement officers employed at airports.

Patron: Wagner

Retirement benefits; creditable compensation of certain law-enforcement officers. Includes in creditable compensation the overtime compensation paid to law-enforcement officers employed full time at an airport in this Commonwealth.

S.B. 424 Contractors; classif. engaged in business of storing, maintain, or repair. vessels license tax pur.

Patron: Norment

Local license tax; contractors engaged in the business of storing, maintaining, or repairing vessels. Provides that any contractor who is primarily engaged in the business of storing, maintaining, or repairing vessels for use on water may elect to be classified for local license taxation purposes as a manufacturer. Contractors making the election shall be deemed to be manufacturers for local license tax purposes. Currently, manufacturers are exempt from local license taxes and fees.

S.B. 431 Retirement; service credit for state employees when there is no general sala

Patron: Wagner

Retirement; service credit for state employees when there is no general salary increase. Provides that state employees shall be credited with up to 12 months of additional retirement service credit for each fiscal year that the Commonwealth does not provide a general salary increase. The amount of service credit to be credited to each such employee shall be equal to the number of months that the person was in service as a state employee in the relevant fiscal year, rounded up to the nearest whole month. Local government employees are not eligible to receive the additional service credit.

The bill is effective for fiscal years beginning on or after July 1, 2004.

S.B. 439 RS & UT; entitles Hampton City to allocable revenues from watercraft business and sales.

Patron: Locke

Sales and use taxes; City of Hampton. Dedicates to the City of Hampton two percent of the 3.5 percent state general sales tax and all of the watercraft sales tax from sales of boats taking place in the City and from sales made by boating businesses located in the City. The City shall use such revenues for enhancing and improving recreation opportunities for boaters and anglers and to fund or implement environmental conservation initiatives.

S.B. 446 Income tax, state; increase personal exemption.

Patron: Rerras

Income tax; personal exemption amount. Increases, beginning with the January 1, 2004, taxable year, the personal exemption for Virginia taxable income purposes from $800 to $1,200 for each personal exemption allowable to the taxpayer for federal income tax purposes. For taxable years beginning on or after January 1, 2005, the $1,200 personal exemption will increase based upon annual increases in the Consumer Price Index.

S.B. 453 Local government taxing authority; equalizing county and city powers.

Patron: Whipple

Local government taxing authority. Equalizes city and county taxing authority by granting counties the same authority available to cities.

S.B. 455 Cigarettes and tobacco products; tax increased.

Patron: Whipple

Taxation; cigarettes and tobacco products. Increases the excise tax on cigarettes from two and one-half cents to 75 cents per pack. Also imposes an excise tax of three percent on noncigarette tobacco products, such as cigars, snuff and chewing tobacco. The tax on noncigarette tobacco products is to be implemented in a manner similar to the present taxation of cigarettes.

S.B. 458 Motor fuels tax; additional imposition in Northern Virginia transportation district.

Patron: Whipple

Sales tax on motor fuels. Increases from two to four percent the sales tax on fuels in every county or city situated in the Northern Virginia Transportation District.

S.B. 465 Cigarettes and tobacco products; tax increased.

Patron: Chichester

Taxation; cigarettes and tobacco products. Increases the state excise tax on cigarettes from two and one-half cents to 35 cents per pack and imposes a 10 percent tax on other tobacco products at the wholesale level. The tax on other tobacco products is paid monthly through the filing of returns.

The bill also authorizes all counties to impose local cigarette taxes beginning July 1, 2005. The bill provides for a maximum local cigarette tax rate of 55 cents per pack. Any city or town that had a higher cigarette tax rate in effect prior to January 1, 2004, is grandfathered to charge the higher rate. However, the maximum cigarette tax that may be imposed by any county would be fixed at 10 cents per pack for the period July 1, 2005, through June 30, 2006, and the maximum rate of 55 cents per pack would be phased in over a four-year period.

S.B. 466 Income tax, state; system of taxation and conformity of terms.

Patron: Chichester

Income tax; the Commonwealth's system of taxation and conformity of terms. Changes the date that Virginia conforms with the provisions of the Internal Revenue Code from December 31, 2002, to December 31, 2003. The bill also contains an emergency clause.

S.B. 467 Tax reform; changes in provisions for income tax, sale & use tax, cig. tax, pers. property tax, etc.

Patron: Chichester

Taxation; A Commonwealth of Opportunity Plan. The governor's tax plan would (i) lower the income tax for most Virginians by increasing the personal exemption amount from $800 to $1,000, increasing the standard deduction amount to $4,000 for singles and married filing separately and to $8,000 for married filing jointly, and raising the filing thresholds to $7,000 and $14,000, (ii) reduce the food tax by 1.5 cents and add 1 cent to the sales and use tax, (iii) tighten certain corporate income tax provisions, (iv) increase Virginia's state cigarette tax to 25 cents per pack to pay for health care needs while giving counties the authority to levy the tax up to a cap, (v) complete the plan to end the car tax on personal vehicles valued at $20,000 or less, (vi) eliminate the estate tax for certain working farms and family-owned businesses, (vii) end the accelerated sales tax collection for retailers, (viii) provide incentives for small and mid-size businesses to invest, (ix) conform Virginia's tax law to make available certain federal tax law changes that will benefit military, reservists, and National Guard families, and (x) streamline collection of the state sales tax.

The bill also amends § 58.1-3833 by authorizing a local meals tax of up to four percent in counties. This section already reads that the local meals tax in counties shall not exceed four percent. However, the section, as published, is incorrect. It includes language setting the local meals tax rate, which amendatory language was dependent upon passage of the 2002 transportation referendums (See Chapter 853 of the Acts of Assembly of 2002). As the referendums did not pass, such amendatory language never became law. The change to § 58.1-3833 is technical in nature. It sets out the Code section as it should have been published and amends the section to clarify current law that authorizes counties to impose a local meals tax up to four percent.

S.B. 476 Virginia Retirement System; purchase of retirement credit for prior service

Patron: Ticer

Virginia Retirement System; purchase of retirement credit for prior service as a substitute teacher. Provides that an employee may purchase retirement credit for prior service as a substitute teacher providing educational instruction to children of military service members in Department of Defense Education Activity schools located outside the United States.

S.B. 483 Library computers; juveniles' Internet access.

Patron: Obenshain

Technology; required protection measures; public libraries. Requires the library board or governing body of a library that receives state funding for any purpose to include in its acceptable use policy for the Internet provisions requiring the selection and installation on those computers that have Internet access a technology protection measure to filter or block Internet access through such computers to child pornography as set out in § 18.2-374.1:1, obscenity as defined in § 18.2-372 and, with respect to minors, materials deemed harmful to juveniles as defined in § 18.2-390. The bill also requires the library board or governing body to actually select and install the technology protection measure.

S.B. 484 Sentencing guidelines; modification for methamphetamine.

Patron: Obenshain

Modification of sentencing guidelines for methamphetamine. Provides that for any conviction involving any substance that contains any quantity of methamphetamine, including its salts, isomers, and salts of isomers, the discretionary sentencing guidelines applicable to cocaine shall be used.

S.B. 500 Retail Sales and Use Tax; exemptions include Loudoun Healthcare Foundation.

Patron: Mims

Sales and use tax exemption, Loudoun Healthcare Foundation. Provides a sales and use tax exemption beginning July 1, 2004, and ending July 1, 2008, to a 501 (c) (3) corporation organized to monitor, assess, and advise a health care company on all fundraising and donor-related matters, and to attain the fundraising goals established by the Loudoun Healthcare, Inc., Board of Directors.

S.B. 501 Retail Sales and Use Tax; exemptions include Farmwell Hunt Homeowners Association, Inc.

Patron: Mims

Sales and use tax exemption; Farmwell Hunt Homeowners Association, Inc. Exempts from the retail sales and use tax beginning July 1, 2004, and ending July 1, 2008, tangible personal property purchased for use or consumption by a corporation organized as a homeowners association and operated to perform the functions of a homeowners association.

S.B. 502 Personal property tax; rate on motor homes.

Patron: Mims

Local property taxes; motor homes. Caps the tangible personal property tax rate on motor homes at the rate of tax and rate of assessment applicable to real estate in the county, city, or town.

S.B. 512 Transient occupancy tax; additional imposition in Fairfax County.

Patron: Mims

Transient occupancy tax; Fairfax County. Provides for an additional two percent transient occupancy tax in Fairfax County beginning July 1, 2004, and ending June 30, 2008, subject to the board of supervisors of the county appropriating the revenues from such tax to a nonprofit convention and visitor's bureau and to the Fairfax County Economic Development Authority. No more than 75 percent of the revenues from such tax shall be designated for and appropriated to the Fairfax County Economic Development Authority to be spent for tourism promotion and no less than 25 percent of the revenues from such tax shall be designated for and appropriated to a nonprofit convention and visitor's bureau located in Fairfax County.

S.B. 514 Retail Sales & Use Tax Act; renamed Streamlined Sales & Use Tax Act to conform w/national agreement.

Patron: Hanger

Streamlined Sales and Use Tax Agreement. Conforms the Commonwealth's sales and use tax laws to the provisions of the Streamlined Sales and Use Tax Agreement.

The bill also amends § 58.1-3833 by authorizing a local meals tax of up to four percent in counties. This section already reads that the local meals tax in counties shall not exceed four percent. However, the section, as published, is incorrect. It includes language setting the local meals tax rate, which amendatory language was dependent upon passage of the 2002 transportation referendums (See Chapter 853 of the Acts of Assembly of 2002). As the referendums did not pass, such amendatory language never became law. The change to § 58.1-3833 is technical in nature. It sets out the Code section as it should have been published and amends the section to clarify current law that authorizes counties to impose a local meals tax up to four percent.

S.B. 515 Income tax, state; subtractions include salary of local public school board employees.

Patron: Hanger

Individual income tax. Provides a subtraction from taxable income for the first $15,000 of salary of local public school board employees whose annual salary is $15,000 or less. Under current law, federal and state employees whose annual salary is $15,000 or less may subtract their salary income in computing taxable income for individual income tax purposes. The subtraction may be taken for taxable years beginning on or after January 1, 2005.

S.B. 517 Transient occupancy tax; additional imposition in Rockbridge Co. & Cities of Lexington & Buena Vista

Patron: Hanger

Transient occupancy tax; Rockbridge County and the Cities of Lexington and Buena Vista. Authorizes an additional two percent transient occupancy tax in the County of Rockbridge and the Cities of Lexington and Buena Vista. The governing bodies of all three localities are authorized to impose the tax. Revenues collected from the tax shall be appropriated for the payment of principal and interest on promissory notes executed by the Virginia Horse Center Foundation or the Virginia Equine Center Foundation prior to January 1, 2004, that were part of an agreement for the Rockbridge Industrial Development Authority to issue bonds on behalf of or for improvements at the Virginia Horse Center Foundation, Virginia Equine Center Foundation, or the Virginia Equine Center. The tax may no longer be imposed after the final payment of principal and interest on all such notes.

S.B. 526 Income tax, state; system of taxation and conformity of terms.

Patron: Hanger

Income tax; the Commonwealth's system of taxation and conformity of terms. Changes the date that Virginia conforms with the provisions of the Internal Revenue Code from December 31, 2002, to December 31, 2003. The bill also contains an emergency clause.

EMERGENCY

S.B. 530 Tax reform; changes in provisions for income tax, sales & use tax, cig. tax, per. prop. tax, etc.

Patron: Hanger

Taxation; omnibus tax plan. The tax plan would (i) increase the personal exemption amount from $800 to $2,500, and increase the standard deduction amount to $3,500 for singles and married filing separately and to $7,000 for married filing jointly, and raise the filing thresholds to $7,000 and $13,000, (ii) make food fully subject to sales and use tax but provide a refundable tax credit for the sales tax paid on food equal to $40 per person, (iii) tighten certain corporate income tax provisions, (iv) increase Virginia's state cigarette tax to 30 cents per pack, distribute all state cigarette tax revenues to local governments, and repeal all local cigarette taxes, (v) beginning January 1, 2005, provide personal property tax relief at 100 percent on personal use vehicles, regardless of vehicle value, (vi) conform the amount of Virginia estate tax due from an estate to the maximum amount of the federal estate tax credit for state estate taxes, (vii) end the accelerated sales tax collection for retailers, (viii) increase the retail sales and use tax by one-half percent to five percent, (ix) conform Virginia's tax law to make available certain federal tax law changes to military, reservists, and National Guard families, (x) change Virginia's individual income tax brackets and add a six percent and 6.5 percent income tax bracket, (xi) make the age deduction dependent upon federal adjusted gross income, and (xii) increase the tax on motor fuels by an additional five cents per gallon.

The bill also amends § 58.1-3833 by authorizing a local meals tax of up to four percent in counties. This section already reads that the local meals tax in counties shall not exceed four percent. However, the section, as published, is incorrect. It includes language setting the local meals tax rate, which amendatory language was dependent upon passage of the 2002 transportation referendums (See Chapter 853 of the Acts of Assembly of 2002). As the referendums did not pass, such amendatory language never became law. The change to § 58.1-3833 is technical in nature. It sets out the Code section as it should have been published and amends the section to clarify current law that authorizing counties to impose a local meals tax up to four percent.

S.B. 531 Parks and Natural Areas Bond Act of 2002; issuance of bonds.

Patron: Hanger

Commonwealth of Virginia Parks and Natural Areas Bond Act of 2002; issuance of bonds. Places a one-year moratorium on the issuance of bonds authorized under the Commonwealth of Virginia Parks and Natural Areas Bond Act of 2002. The Treasury Board shall not issue any bonds authorized under the Act, with the exception of refunding instruments, in the period beginning July 1, 2004, and ending June 30, 2005.

S.B. 532 Educational Facilities Bond Act of 2002; issuance of bonds.

Patron: Hanger

Commonwealth of Virginia Educational Facilities Bond Act of 2002; issuance of bonds. Places a one-year moratorium on the issuance of bonds authorized under the Commonwealth of Virginia Educational Facilities Bond Act of 2002. The Treasury Board shall not issue any bonds authorized under the Act, with the exception of refunding instruments, in the period beginning July 1, 2004, and ending June 30, 2005.

S.B. 533 Retail Sales and Use Tax; extends sunset provision for certain media-related businesses.

Patron: Stosch

Sales and use tax exemption; advertising businesses. Extends the sunset date from July 1, 2004, to July 1, 2008, for the exemption from sales and use tax for the purchase of printing materials by advertising businesses when the printed material is distributed outside the Commonwealth.

S.B. 537 Income tax, corporate; credit for cigarettes manufactured and exported.

Patron: Stosch

Corporate income tax; credit for cigarettes manufactured and exported. Provides a credit against corporate income taxes for the number of cigarettes manufactured by a corporation, which are also exported by the corporation to a foreign country. The bill establishes taxable year 2003 as a base year for the number of cigarettes exported. In future taxable years, the credit is computed by comparing the actual number of cigarettes exported by the manufacturer in the relevant taxable year with the number of cigarettes it exported in taxable year 2003. The credit per cigarette will vary based upon this comparison. No credit will be granted if the number of cigarettes exported is less than 50 percent of the number exported in taxable year 2003. In cases where the number of cigarettes exported in a taxable year is 50 percent or more of the number exported in 2003, the credit for the relevant taxable year will range from $.20 per 1,000 cigarettes exported up to $.40 per 1,000 cigarettes exported. The maximum allowable credit in any taxable year is $6 million.

S.B. 540 Retirement System; amending defined contribution plan.

Patron: Stosch

Virginia Retirement System; defined contribution plan. Permits an employee who moves from a position covered under the Virginia Retirement System's ("VRS") defined contribution plan to a position covered under a different VRS retirement program to use his own funds to purchase service time in the new program if the amount in his defined contribution plan account is insufficient to pay the actuarial cost of the total time worked in the prior position.

S.B. 541 Retirement System; procedure when employer in default.

Patron: Stosch

Virginia Retirement System; employer in default. Clarifies the process to occur when an employer becomes financially unable to make contributions to the Virginia Retirement System on behalf of its employees.

S.B. 559 State police officers; salary increases.

Patron: Potts

State police officers; salary increases. Specifies that it is the policy of the Commonwealth to provide adequate and consistent salary increases to state police officers and directs the Department of Human Resource Management to determine annually any instances where Virginia officers are compensated at less than the average of their counterparts in surrounding states. The Governor shall propose sufficient funds in the Budget Bill to correct any such deficiencies.

S.B. 568 Claims; Sean and Jennie Barrett.

Patron: Bolling

Claims; Sean and Jennie Barrett. Provides relief for Sean and Jennie Barrett, consisting of a lump-sum payment of $13,205.98 to be paid by August 1, 2004. Mr. and Mrs. Barrett purchased a house and six-acre parcel that contained a malfunctioning septic system in 1998. The presence of the malfunctioning septic system was not revealed to them prior to purchase. Although Mr. and Mrs. Barrett obtained an out-of-court settlement with the seller's real estate agent regarding the failure to disclose the malfunctioning septic system, events related to the erroneous issuance of a sewage disposal construction permit in 1988 also contributed to the situation faced by Mr. and Mrs. Barrett. The Caroline County Department of Health, which is an agency of the Virginia Department of Health, issued a sewage disposal construction permit in 1988. The physical inspection prior to the issuance of this permit was conducted not on the six-acre parcel, but on an adjoining 10-acre parcel. Based upon the inspection of the 10-acre parcel, a sewage disposal construction permit was issued for the six-acre parcel. It is unclear how the permit inspection for the 10-acre parcel resulted in the issuance of a permit for the six-acre parcel.

S.B. 571 Retail Sales and Use Tax; extends sunset provision for film and audiovisual works.

Patron: Lambert

Sales tax exemption for film, video, and audio. Extends the expiration date for the exemption of sales tax for film, video, and audio.

S.B. 572 Claims; Beverly Anne Monroe.

Patron: Lambert

Claims; Beverly Anne Monroe. Provides relief for Beverly Anne Monroe who was incarcerated between 1992 and 2002. A panel of the United States Court of Appeals for the Fourth Circuit ruled that Ms. Monroe's 1992 trial was flawed because of the prosecution's failure to disclose exculpatory evidence and granted her a new trial. The Commonwealth's Attorney for Powhatan County decided not to retry Ms. Monroe. Under the bill, the Commonwealth will provide a lump-sum payment to Ms. Monroe of $400,000 to be paid by August 1, 2004, and $1,237,000 through an annuity to be paid in equal monthly payments for 20 years commencing on or before September 1, 2004.

S.B. 583 College Building Authority; designation of projects financed by bonds.

Patron: Saslaw

Virginia College Building Authority. Clarifies that boards of visitors of public institutions of higher education must designate as Virginia College Building Authority (VCBA) projects those projects to be financed by VCBA bonds secured by a pledge of any one or more of the revenue sources cited in subdivisions (1) through (4) of subsection (d) of § 23-19 (such as project rentals and fees or increased rentals and fees for existing facilities; new rentals and fees for existing facilities; student building fees and other student fees; and other general and nongeneral fund appropriations to the institution). The measure is designed to eliminate the need for institutional designation of projects financed under the VCBA 21st Century Program.

A second enactment clause "validates, ratifies, approves, and confirms" all VCBA bonds issued previously to purchase educational institution bonds pursuant to § 23-30.27, to acquire equipment pursuant to § 23-30.27.1, or to pay for all or any portion of the cost of one or more projects or portion or portions thereof.

S.B. 585 Retail Sales and Use Tax; exemptions include certain nonprofit entities.

Patron: Colgan

Sales and use tax; nonprofit entities. Modifies the process for exempting nonprofit entities from sales and use tax as such process was designed by the 2003 General Assembly to go into effect on July 1, 2004, by: (i) permitting churches to continue self-renewal exemptions; (ii) grandfathering the types of organizations that are exempt from collecting sales and use tax on fund-raising sales of tangible personal property; and (iii) making several technical amendments.

S.B. 589 Tax reform; changes in provisions for income tax, sales and use tax and corporate tax.

Patron: Lucas

Taxation; reform package. Makes several changes to the state tax code as follows: (i) increases the income tax personal exemption amount from $800 to $2,500, (ii) increases the income tax standard deduction amount to $3,500 for singles and married filing separately and to $7,000 for married filing jointly, (iii) adds and expands the income tax rates, with a top rate of seven and one-half percent on income greater than $100,000, (iv) eliminates the low-income tax credit and the age deduction; (v) provides an income tax credit for sales taxes paid that is income-based; (vi) eliminates the sales tax on food and expands the sales tax to include consumer services; and (vii) tightens certain corporate income tax provisions, and increases the rate from six percent to seven and one-half percent.

S.B. 599 Retirement System; electronic communication to State and local members.

Patron: Lambert

State and local retirement systems; electronic communication. Permits the Virginia Retirement System and certain local retirement systems to communicate required information to members and beneficiaries through electronic media.

S.B. 627 Utility tax; imposition on local consumers in Town of Vienna for mobile phone usage.

Patron: Devolites

Local consumer utility tax. Allows the local governing body of the Town of Vienna to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after July 1, 2004. While the town ordinance remains in effect, Fairfax County shall not impose the tax within the limits of the Town of Vienna.

S.B. 628 Sickness and Disability Program; changes in short-term and long-term coverage for state employees.

Patron: Devolites

Virginia Sickness and Disability Program. Begins short-term disability coverage for state employees hired on or after July 1, 2004, one year after employment, and begins long-term disability coverage for such employees five years after employment. Current law provides such coverage beginning the first day of employment.

S.B. 632 Retail Sales and Use Tax; exemptions include software and content delivered electronically.

Patron: Devolites

Sales and use tax exemption for software and content delivered electronically. Expressly exempts the electronic delivery of software, data, content and other information services via the Internet from the Commonwealth's sales and use tax. This bill clarifies existing law by codifying a long line of Tax Commissioner Rulings (97-405 and 02-111).

S.B. 635 Tax reform; changes for income tax, sales and use tax, estate tax, and local license tax.

Patron: Chichester

Omnibus tax bill. Makes several changes to the taxes and fees of the Commonwealth as follows:

Corporate income tax. The bill tightens certain corporate income tax provisions.

Personal property tax relief. The bill provides personal property tax relief on qualifying vehicles at the 100 percent level beginning January 1, 2005.

Sales and use tax. The bill increases the state sales tax from 3.5 percent to 4.5 percent and dedicates a portion of the revenues generated to the Virginia Water Quality Improvement Fund and the Virginia Land Conservation Fund; reduces the state sales tax on food to one percent; dedicates the sales tax revenues from the 1986 one-half percent increase and an additional one percent of the current 3.5 percent state tax to reimburse localities for personal property tax relief; and eliminates provisions requiring vendors to make accelerated sales and use tax payments.

Individual income tax. The bill adds new tax brackets of 6.25 percent for income between $100,000 and $150,000 and 6.5 percent for income above $150,000; increases the standard deduction for single taxpayers to $3,500 and to $7,000 for married taxpayers; increases the personal exemption amount to $1,000; increases the filing threshold for married taxpayers to conform to the new level of standard deduction and personal exemption; applies a means test to the age deduction tax preference; and in tax year 2011, eliminates eligibility for the $6,000 age deduction for those born after January 1, 1949.

Estate tax. Conforms the amount of Virginia estate tax due from an estate to the maximum amount of the federal estate tax credit for state estate taxes, as permitted under federal estate tax law.

License tax on automobile insurance premiums. Dedicates the revenues from the state license tax on insurance companies that are attributable to automobile insurance premiums to the Priority Transportation Fund. The bill also repeals current law dedicating one-third of all insurance license taxes to the Priority Transportation Fund.

Recordation tax, titling tax, fuels tax, and motor vehicle registration fees. Increases the recordation tax from 15 cents to 45 cents per $100 and dedicates the revenues from the increase to the Rainy Day Fund through June 30, 2006, and to the Transportation Trust Fund thereafter.

The bill also increases the titling tax on motor vehicles from 3.5 percent to 5.5 but allows a deduction for trade-ins, increases motor vehicle registration fees by $10 annually, and increases the gasoline tax by three cents per gallon and the tax on diesel fuel by 4.5 cents per gallon and imposes an additional 5.5 percent wholesale tax on gasoline and diesel fuel. The revenues from these increases are dedicated to the Transportation Trust Fund.

The bill also amends § 58.1-3833. The section, as currently published, is incorrect. The change to § 58.1-3833 is technical in nature. It sets out the Code section as it should have been published and the change clarifies current law that authorizes counties to impose a local meals tax up to four percent.